As expected, inflationary pressures and infrastructure costs resulted in a sobering draft budget Wednesday night, with Chatham-Kent staff presenting a proposed 6.35 per cent tax hike.
Although not the final number — with community consultations and deliberations still to come — the first budget of this term will require some difficult decisions, councilors heard.
The proposed increase would have a $200 impact on the average household, at a time when residents and businesses are facing cost pressures of their own.
Capital costs and asset management account for 3.65 per cent of the total figure.
“This is a really challenging economic climate,” Michael Duben, chief administrative officer, said at the beginning of the presentation.
“It’s a really difficult year, especially with inflation and uncertainty going forward.”
Duben credited staff members for their work in putting the draft budget together.
Gord Quinton, chief financial officer, said hopefully some cost hikes will be temporary, such as those impacted by supply chain issues, but admitted others are likely permanent.
He reiterated how provincial infrastructure funding staying at $10 million will also have a detrimental impact.
“Them freezing it, really with inflation is a reduction,” Quinton said.
There were several deputations and funding requests Wednesday, including from Chatham-Kent Health Alliance for its Wallaceburg site redevelopment, as well as from Indwell affordable housing. However, these will be discussed further on in the budget process.
After the meeting, Chatham County. Brock McGregor, budget chair, said the large proposed tax increase, the highest in recent years, was anticipated.
“Watching that inflation number go up, you can kind of do the math in your head and see where we were headed,” he said. “But still, when we’re used to these one and a half, two, three per cent budget increases, it is a bit of a starting number to start at.”
Online community consultation meetings are slated for Jan. 18 at noon and Jan. 7 p.m.
For the past two years, these consultations took place online because of the COVID-19 pandemic. However, due to increased public participation, it was recommended they continue in this format.
Budget committee deliberations will be held at 6 pm on Jan. 25, Jan. 26 and Jan. 31, with Feb. 1 and 2 set aside if needed.
This story will be updated.